Future in doubt for Patisserie Valerie

Cake chain Patisserie Valerie is facing a fight for survival after receiving a winding up petition over unpaid taxes and unearthing potentially fraudulent accounting irregularities.

In a stock market update issued yesterday afternoon, parent firm Patisserie Holdings said it has received a winding up petition for its principal trading unit Stonebeach.

It relates to £1.14 million owed to HMRC and was filed at the High Court of Justice, Companies Court.

The winding up hearing is scheduled for 31 October and Patisserie Holdings said it is in communication with HMRC as it scrambles to “understand better the financial position of the group”.

It caps a dramatic day for the firm, which earlier saw its shares suspended following the discovery of an accounting black hole.

Patisserie Holdings said it has been notified of “significant, and potentially fraudulent, accounting irregularities and therefore a potential material mis-statement of the company’s accounts”.

This has significantly affected the company’s cash position and may lead to a “material change” in its overall financial position.

Patisserieaskeditsshares be suspended from trading while it investigates.